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Short Problems $$ Respond to following problems $(7\mathrm{.}5$ points each$)$

$1.$ In its first three years of operations, Vaden Corp. experienced the following income$/($losses$)$:

Year Income$/($Loss$)$ Tax Rate

$202175,0000\mathrm{.}30$

$202250,0000\mathrm{.}35$

$2023(150,000)0\mathrm{.}35$

Required:

a$.$ Prepare the journal entry that Vaden needs to make in $2023,$ assuming that it is more likely than not that any loss carryforward will be realized?

b$.$ Prepare the income tax section of the income statement for $2023,$ beginning with Pretax Net Loss.

c$.$ What additional entry would Vaden need to make in $2023$ if it is more likely than not that any loss carryforward will NOT be realized?

$2.$ On January $1,2023,$ Lenore Corp. purchased $500,000$ of $5\%$ bonds for $$530,750,$ which they are classifying as available for sale. Interest is payable annually on December $31.$ The bonds mature on December $31,2025.$ Premium or discount amortization is recorded when interest is received by the straight$-$line method. The market value of the bonds at December $31,2023$ is $528,000.$

Required:

a$.$ Prepare the entry to record the acquisition on January $1,2023.$

b$.$ Prepare the entry to record the December $31,2023$ interest payment.

c$.$ Prepare the entry to adjust the investment to fair value at December $31,2023.$

d$.$ The bonds are sold on January $1,2024$ for $535,000.$ Prepare any entries necessary to record the sale.

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